1. PBR – It’s not just Life Insurance
What to expect for Variable Annuities, Fixed Annuities, and RBC
Linda Lankowski, FSA, MAAA

2. Variable Annuities PBR – The Latest Developments
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3. Variable Annuities – Background
Concern over Captives
Disclosure of Hedging
Quantitative Impact Study (aka QIS) (2016)
QIS2 (2017)

4. QIS2 Recommendations

5. VAIWG and QIS2

6. CTE calculations - Agreed
Same Scenarios for CTE 70 (reserves) and C3-P2 (RBC)
No more Working Reserve
Modeling for Hedges (CDHS)
Treatment of Revenue Sharing

7. Standard Scenario - Agreed
Remove Standard Scenario Requirement…But…
Create new Standard Projection
Align assumptions with Stochastic Model

8. Additional Disclosures
Other - Agreed
Additional Disclosures
CDHS related
Assumptions
Accounting Changes

9. Economic Scenario Generator Assumptions Refresh
Still Being Discussed
Economic Scenario Generator
Assumptions Refresh
PHer Behavior
Market Paths
Company Specific?
Data not yet being collected at industry level

10. Non- Variable Annuities
PBR – The Latest Developments
Non- Variable Annuities
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11. Regulator Concern over non-traditional features
Fixed Annuities
Regulator Concern over non-traditional features
FIAs
GMxBs
VM-22 Updates for Val’n Interest Rate
Will wait for AG-43/VM-21 updates before PBR proposal
Expect similar to VM-21

12. Long Term Care PBR – The Latest Developments
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13. LTC Other Products Academy paper on PBR for LTC
Trying to solve Premium Rate Increase inconsistency issue first

14. RBC - Not Exactly PBR PBR – The Latest Developments
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15. Tax Reform impact to RBC
Expect changes to take effect in 2018
More changes in 2019
C-1: 20 Bond factors
C-2: Update to take account of new CSO table
Longevity Risk factor
Operational Risk

16. Questions & Answers
Questions?